Mediterranean Hegemony Road
Chapter 59, Untouchable Inheritance Tax
If you want to get rich, build roads first. This sentence was also applicable at the beginning of the 20th century. Don't look at Bulgaria's planning of a bunch of industrial plans. In fact, most of them have not yet started.
Everyone is waiting for the government to build roads? As long as the traffic problem is not solved one day, the big industrial plan is nonsense!
The local Balkans are already very good. Ferdinand does not plan to continue to develop heavy industry here, and other areas are very backward, even in the Asia Minor Peninsula, which has been operated by the Ottoman Empire for hundreds of years. What a decent industry.
Since 1916, when the Bulgarian army landed on the peninsula of Asia Minor, road construction has already begun. At present, there are more than one million prisoners of war under the railway company, who are fighting for this great and sacred cause.
If you add prisoners, ordinary railway workers, and industrial workers and technicians from supporting enterprises, the total number of the Bulgarian Railway Company alone will exceed 2.6 million!
Now that the big road plan is launched, the Bulgarian road construction army will once again break through one-tenth of the total population, to be exact, one-tenth of the registered population!
Such a high labor input ratio is naturally impossible to produce under normal circumstances. Other industries in the country also need labor. Fortunately, this era is the colonial era, and there are still cheap labor available.
By the end of 1921, the population with household registration in Bulgaria had exceeded 48.76 million, of which more than 3.4 million were naturalized immigrants, and the rest were new population growth.
Perhaps it was suppressed for a long time during the World War. Since 1919, the domestic baby boom has exploded, and the birth rate reached its peak of 5.18% in 192o. (refer to the data of the Russians)
This is also the highest peak since the founding of Bulgaria. According to experts from the Population Administration, this wave of baby booms will probably last until around 193o.
This means that in the next ten years, Bulgaria's population growth rate will remain between 3.1% to 3.8%, and they are optimistic about the population doubling plan within 20 years.
As a price, the Chancellor of the Exchequer cried to Ferdinand every day!
From now on, the Bulgarian government will pay a million mothers a yearly salary during pregnancy, and the rural population is also included in the budget.
According to the new labor law, the minimum wage in Bulgaria is not less than 75 levs per month and 3 levs per day, which is 45 levs for half a year.
For this alone, the annual cost exceeds 450 million leva! If you take into account the full exemption of medical expenses during childbirth and the incentive policy starting from the third child, up to 700 million leva will be invested every year for family planning.
The investment in this aspect is high, and the investment in other aspects is low. This is also a matter of no way. In the early 1930s, Bulgaria was also a proper country at that time.
However, in terms of social welfare, Bulgaria is far behind European countries. The Germans had established a universal pension system as early as the 1880s.
Since then, the era of human pensions has begun. Now, most countries in Europe have established pension systems. The establishment of Bulgaria's social pension system has long become a hot topic in society.
This problem has also plagued Ferdinand for a long time. At present, the most popular pension system in the world is funded by pension insurance and government financial appropriation.
There is not much social pressure in the short term, Bulgaria's average life expectancy has just exceeded 65 years, and the age of population aging has not yet arrived.
But the future will be troublesome. Maybe in a hundred years, Bulgaria will not have to worry about pensions. Anyway, there is oil behind, and the government cannot be poor!
If Ferdinand was just the president of the country, he would be happy to do so, without thinking too far, to directly build a high-welfare society, hello, hello, everyone!
It's a pity that he is the king, and he must think long-term. If the oil resources are exhausted, or the birth of new energy replaces oil, what will Bulgaria do?
History has told him that a country that is too resource-intensive, once the resources are exhausted, the entire society will collapse immediately!
Followed by Ferdinand smiled again, it seems that this loophole can be plugged in advance.
Bulgaria is still a struggling country. Everyone has a strong sense of social responsibility, and there are very few people who are greedy for pleasure. If a shackle is set up in advance to limit the dependence of future generations on resources, it seems to be very interesting!
...
After April Fool's Day, Ferdinand consulted the whole society on the establishment of the Bulgarian pension system, and also held a government seminar.
Xiang Constantine reported to Ferdinand Hui: Your Majesty, this is our government's plan for establishing a pension system, please read it!
Ferdinand took the document and did not open it, so he asked directly: First, what kind of pension system the government intends to establish, where does the fund come from, and how to calculate the proportion?
Covering the crowd, what else? How can we ensure the smooth implementation of this plan, as well as long-term development!
Constantine thought for a while and said: The pension system planned by the government is mainly to learn from the three countries of Britain, France and Germany, and now we are going to implement pension insurance.
That is to say, the young people pay the old-age insurance funds and give the old people pensions. Our government has calculated in detail that there are about 2.2 million people over the age of 60 in Bulgaria.
According to the principle of fairness, we only need to give pensions to those who have contributed to Bulgaria, that is, those who have worked in Bulgaria for 20 years and hold Bulgarian nationality. This group of people only accounts for 1.8 million.
According to the current minimum wage standard in society, a total of 1.62 billion leva is needed to provide pensions.
At present, there are more than 23 million young men and women of school age in the country. If calculated at 1.62 billion levs, then each person only needs to pay 71 levs.
This is less than their monthly salary, which is completely within everyone's tolerance! According to this cycle, we can adjust the pension insurance according to the actual situation!
Seeing such a simple and crude pension system, Ferdinand shook his head helplessly, and then said, Your Excellency, have you considered that now the average life expectancy in Bulgaria is 65 years old, but in 1889, when Bulgarian The average life expectancy is only 52 years old!
If there is no accident, you will be surprised to find that our average life expectancy will exceed 70 years old within ten years, and our average life expectancy may exceed 75 years old in twenty years!
As the average life expectancy continues to increase, the demand for pensions in the society will also rise sharply. Our population growth cannot continue indefinitely. What should we do once an aging society comes?
There is also a need for our citizens to have little economic pressure on the surface, and everyone's life is not bad, but don't forget that they also have children. It is not uncommon for two adults to raise four or five, or even seven or eight children. .
Now the incentives and subsidies given by our government seem to be enough for them to raise their children in the short term, but don't forget the existence of inflation. With the development of the economy, it is inevitable that prices will rise.
We cannot guarantee that the income of each of them can rise synchronously. The current pension does not seem to be much, but what about the future?
Now, 1.8 million people are receiving pensions. In ten years, 3.8 million people, or even 400,000 people are receiving pensions. However, it is impossible for our contributors to double within ten years!
And will this payment base continue to increase? What should we do if the aging population arrives decades later?
If one day, our entire society becomes four generations in the same house, or five generations in the same house, what should we do?
Ten young people raise an old man, everyone can bear it, and five young people raise an old man, everyone can bear it, but a young man raises several old people, it is estimated that this will kill our descendants!
Don't be in a hurry to deny this possibility. With the deepening of industrialization, it is inevitable that the birth rate will decline. At the same time, the population carrying capacity of the earth is also limited. It is inevitable that this situation will explode one day in the future!
Constantine was dumbfounded, and everyone was dumbfounded. He thought it was just a simple problem, but now it has become such a complex social problem.
What should I do? Ferdinand didn't know what to do either! Relying on the social pension insurance system will definitely not solve the future pension problem in Bulgaria, unless the average life expectancy of the whole society is reduced, or the payment period is continuously increased and the pension period is reduced.
In this case, it is better to directly open this issue to the whole society, and let the Bulgarian people decide whether or not to establish this pension system!
That's right, Ferdinand doesn't plan to jump into the huge hole of high welfare. It is the beginning of the 20th century. The wealth created by the whole society is limited, and it is impossible to endlessly improve social welfare.
The pension system still needs to be established, but the standard cannot be as high as the outside world guesses. With the development of the social economy, the social wealth consumed by human beings is becoming more and more limited when it comes to eating.
Therefore, the establishment of an endowment insurance with a minimum living guarantee is in line with the actual situation in Bulgaria, but to establish a pension system that is equivalent to the income of ordinary workers, then it will be avoided.
Whether or not to pay for endowment insurance is also left to the people to decide for themselves. It is really not feasible for the government to establish a relief agency in the future.
Seeing everyone's stunned expressions, Ferdinand knew that these issues were not in their consideration. No way, this is also the reality, how many politicians will consider the issue decades later?
If everyone thinks so long-term, Europe will not decline in future generations, and most countries are dragged to death by high welfare!
Okay, I hope you will study this issue in depth, consider the issue more comprehensively, and at the same time explain the situation to the whole society to see who has a good solution to this problem! Ferdinand said again.
The Chancellor of the Exchequer Kennedy thought about it and said, Your Majesty, can we solve this problem through taxes?
For example: levy personal income tax, to achieve this goal by raising taxes on high-income groups, without passing this burden on to the whole society!
Ferdinand shook his head and said, Individual income tax can be collected, but relying on this to solve the pension problem is nothing but a dream!
And it is also very troublesome, maybe the money received is not enough to pay the tax personnel!
We can’t supervise it at all. Capitalists have ways to avoid tax, personal income tax, and in the end, they can only collect some of the money of the middle class!
For example: What if the company does not pay dividends? They even offered themselves a low salary of 1 lev, and put all their profits on the company's accounts. All their expenses could be spent on the company's accounts, without affecting their daily life at all!
You can't always collect personal income tax according to his company's finances, right?
Kennedy said reluctantly: What if there is an inheritance tax?
Ferdinand shook his head and said, The inheritance tax must not be collected!
The imposition of inheritance tax will have very bad social effects and even affect the national stability of Bulgaria!
We want to encourage everyone to invest in industry now. If the government wants to levy inheritance tax, who would dare to invest in industry?
Once the assets become real estate, your inheritance tax rate is slightly higher, and the heirs can't pay the tax in cash, what should I do?
Does the company directly go bankrupt? Or that the government can still accept the shares? If this is the case, it may not be long before all of Bulgaria's state-owned enterprises are left!
In more cases, capitalists signed an estate disposal agreement before they died, such as selling a business at a price of one lev. Is this tax still necessary?
Of course, we can also collect according to the actual value of the enterprise, and the consequences go back to the previous question. The enterprise will either go bankrupt or the government will take over the shares!
Kennedy was silent. As long as the economic subject of Bulgaria is an industry, it is doomed that the inheritance tax will not work. There is even greater resistance, from the power of tradition, the whole society will oppose the imposition of inheritance tax!
If this tax is made, the peasant class will be rioting. Now the peasant class in Bulgaria is very powerful, and it is the most capable class.
The military nobles are the spokespersons of the peasant class in the government. They stand together in terms of interests. Whoever dares to touch their land will kill them!
In Bulgaria now, any tax can be collected, but the inheritance tax cannot be touched. Whoever touches it is ruined!
Kennedy seemed to have thought of something. Cold sweat started to form on his forehead. Fortunately, it was raised at a high-level meeting of the government and the news would not be leaked.
If it is left to the outside world, just relying on this proposal to levy inheritance tax, he will be ruined, and what he does against all the Bulgarian people, it is better not to do it!
Following Kennedy, he looked at Ferdinand gratefully. He knew that he had already gone to the gate of hell just now. If it wasn't for Ferdinand's evasive explanation, once the lid was lifted, he would be finished!
Of course, what he didn't know was that His Majesty the King in front of him was the backbone of the opposition to inheritance tax. Who made his vests spread all over Bulgaria?
Once there is an inheritance tax, the most heart-wrenching scene will appear. Most of the inheritance tax in the country is paid by him alone!
How does this work? Isn't this the equivalent of a tax specially set for him alone?
As the boss of this country, it is already very good for him to be able to pay taxes. If there is another tax specially set for him, is there still a king's law?
This hidden danger must be eliminated in the cradle. He has decided to add an article to the constitution, not to levy inheritance tax on any real industry or real estate!
Taking advantage of the current social environment, all vested interests in Bulgaria are members of the opposition to the imposition of inheritance tax, and directly eliminate this hidden danger!
At this time, many people reacted, and looked at Kennedy's eyes, and they were a little bad. Even if you want to court death, don't bring such a thing?
Everyone has a lot of fiefs? Once the inheritance tax is levied, there is one sitting and one is the main force of tax payment.
They are all nobles of a generation, and there are very few who can take out this money! If there is no money, the fiefs will be cut. Isn't this killing them?
Ferdinand had already mourned three seconds of silence for Kennedy in his heart, knowing that his future would definitely be difficult. Considering that now, he still needs this capable finance minister, so he opened his mouth to relieve him.
Okay, about the issue of increasing taxes, stop here, no one is allowed to mention it outside!
The topic of today's discussion is the issue of pensions. The government must consider the issue comprehensively, and at the same time, publicize these possible situations to all sectors of society.
The establishment of a pension system is a long-term social issue. We cannot make a direct decision arbitrarily. It must be discussed by all the people of Bulgaria and let them decide whether to establish this system!
And whether to achieve full coverage is also a problem. Everyone's income is different, and the economic level of different places is also different. How to determine this standard is also a very serious problem!
When the government comes down, we need to go out and see more and listen to what ordinary Bulgarians have to say. Before the pension system is established, we can establish a social assistance system.
Provide basic social assistance to those elderly people who have contributed to Bulgaria and are now deprived of the labor force, have no children, or whose children cannot afford their pension obligations!
...
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